Evoqua Water Technologies (NYSE: AQUA), an industry leader in mission-critical water treatment solutions, today announced that it has entered into a definitive agreement to divest its carbon reactivation and slurry operations to DESOTEC, the European market leader for industrial mobile filtration solutions based on activated carbon technology.
The agreement, which includes the product line's workforce, reactivation facilities and associated equipment in Darlington, Pennsylvania, and Parker, Arizona, and the reactivation and carbon vessel manufacturing facility in Red Bluff, California, is expected to close during Evoqua's third quarter of fiscal 2023, which ends June 30, 2023, subject to customary terms, regulatory approvals, and closing conditions. Gross proceeds upon closing of the transaction are anticipated to be approximately $100 million.
The sale of the carbon reactivation and slurry business will allow Evoqua to focus on its core service business, which includes carbon services and the sale of high-quality activated carbon. After close, Evoqua will enter into a supply agreement with DESOTEC for reactivated carbon to continue to service its customers. Carbon is typically used in municipal and industrial applications to remove organic and inorganic contaminants from water sources.
"A critical aspect of our strategy is to focus on businesses aligned with our technology and service core competencies, with the highest potential for global growth, scalability, and value creation," said Ron Keating, Evoqua's Chief Executive Officer. "We are confident that the carbon reactivation and slurry business will thrive under DESOTEC's leadership, and we look forward to working together as we provide activated carbon solutions to the marketplace."
Julie Santens, Chief Executive Officer of DESOTEC, added, “Today’s announcement marks the beginning of an exciting new chapter for DESOTEC as we continue on our mission to better protect the planet. This landmark investment is the first step as we embark on the rollout of our North American growth strategy and further expansion of our leading market position. We are delighted to partner with Evoqua, and look forward to best serving all our customers, employees and other stakeholders involved.”
About Evoqua Water Technologies
Evoqua Water Technologies is a leading provider of mission-critical water and wastewater treatment solutions, offering a broad portfolio of products, services, and expertise to support industrial, municipal, and recreational customers who value water. Evoqua has worked to protect water, the environment, and its employees for more than 100 years, earning a reputation for quality, safety, and reliability around the world. Headquartered in Pittsburgh, Pennsylvania, the company operates in more than 150 locations across nine countries. Serving more than 38,000 customers and 200,000 installations worldwide, our employees are united by a common purpose: Transforming Water. Enriching Life.® To learn more, visit www.evoqua.com.
DESOTEC, founded in 1990, is the leading European provider of mobile filtration solutions through a unique and circular service concept, which helps protect the planet by enabling clean water, air, and soil. DESOTEC's customer base is constantly growing thanks to a strong focus on 24/7 service and a commitment to design and deliver the best solution in close dialogue with the customer. Through in-depth expertise of industrial applications and continuous investment in mobile filters, reactivation capacity and well-positioned hubs, DESOTEC ensures that the industry can meet the increasing regulations for a better and cleaner environment. Private equity funds managed by Blackstone acquired DESOTEC in 2021. Further information is available at www.desotec.com.
Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $951 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, infrastructure, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com.